Despite government efforts, India's manufacturing sector has not boosted its GDP contribution or employment share. Formal manufacturing shows output and job growth, but wages per worker lag profits, and productivity is stagnant. Organised manufacturing employs over 2 crore, yet most non-farm workers remain in the informal sector due to inadequate formal job creation. Small firms dominate. This sector's failure as a mass employment engine leaves millions in farming or gig work, deepening India's employment challenge.